American Express’ new partnership with China’s fintech giant Alipay marks a significant step in its expansion into the lucrative and rapidly growing Chinese market. The deal allows American Express cardholders to link their cards to Alipay’s popular digital wallet, enhancing their payment options.
By integrating with Alipay’s extensive network—boasting roughly 80 million merchants—American Express cardholders can make seamless purchases at stores across China without needing cash or a physical card. The partnership also provides American Express access to Alipay’s vast user base, which exceeds 1.3 billion customers.
American Express’ Foray in China
American Express has long set its sights on China. A decade ago, it formed a joint venture, Express (Hangzhou) Technology Services Co., with Chinese fintech services company LianLian. Together, they established a network business under the name The Express Company, enabling domestic clearing and settlement for transactions made with American Express-branded cards. This milestone made American Express the first foreign payments network licensed to clear renminbi transactions in mainland China.
In 2021, American Express launched two branded debit cards in China, catering to local preferences. While consumers in China generally favor debit cards over credit cards, mobile payment methods—especially digital wallets—dominate the market.
To date, American Express has partnered with more than 30 Chinese banks, third-party payment institutions, and mobile wallet operators, ensuring that cardholders can use their cards at millions of merchants across the country.
China’s Growing Travel Market
The partnership with Alipay is specifically focused on capturing China’s growing travel market. During the first five days of the recent Chinese New Year celebrations, inbound travel spending via Alipay surged by 150% year-over-year, while transactions made by outbound Chinese travelers increased by 30%.
Alipay has also been working to simplify spending for foreign visitors in China. Last March, the company raised the annual spending limit for foreign users on its app from $500 to $2,000 without requiring ID registration. Additionally, in April, the Chinese government decreed that all three-star and higher-rated hotels, along with top tourist attractions, must accept all forms of card payments, including foreign bank cards like American Express.
